Investor Presentation
August 2020
Cautionary StatementON FORWARD-LOOKING STATEMENTS: This presentation includes
information, statements, beliefs and opinions which are forward-looking, and
which reflect current estimates, expectations and projections about future
events, referred to herein as “forward-looking statements” within the meaning
of the U.S> Private Securities Litigation Reform Act of 1995 or “forward-looking
information” under applicable securities laws. Statements containing the words
“believe”, “expect”, “continue”, “could”, “potential”, “predict”, “would”,
“intend”, “should”, “seek”, “anticipate”, “will”, “opportunity,” “positioned”,
“poised,” “project”, “risk”, “plan”, “may”, “estimate” or, in each case, their
negative and words or expressions of similar meaning are intended to identify
forward-looking statements. By their nature, forward-looking statements
involve a number of known and unknown risks, uncertainties and assumptions
concerning, among other things, the Company’s anticipated business
strategies, anticipated trends in the Company’s business and anticipated
market share, that could cause actual results or events to differ materially from
those expressed or implied by the forward-looking statements. These risks,
uncertainties and assumptions could adversely cause the Company’s
actual results, performance or achievements to be materially different from any
projected results, performance or achievements expressed or implied by the
forward-looking statements. In addition, even if the outcome and financial
effects of the plans and events described herein are consistent with the
forward-looking statements contained in this document, those results or
developments may not be indicative of results or developments in subsequent
periods. Although the Company has attempted to identify important risks and
factors that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other factors
and risks that cause actions, events or results not to be as anticipated,
estimated or intended. Forward-looking statements contained in this
presentation is based on the Company’s current estimates, expectations and
projections, which the management of the Company believes are reasonable
as of the current date. The Company can give no assurance that these
estimates, expectations and projections will prove to have been correct. You
should not place undue reliance on forward-looking statements, which
are based on the information available as of the date of this document.
Forward-looking statements contained in this document are made of the date
of this presentation and, except as required by applicable law, the Company
assumes no obligation to update or revise them to reflect new events or
circumstances.
Historical Information: Historical statements contained in this document
regarding past trends or activities should not be taken as a representation that
such trends or activities will continue in the future. In this regard, certain
financial information contained herein has been extracted from, or based upon,
information available in the public domain and/or provided by the Company. In
particular, historical results should not be taken as a representation that such
trends will be replicated in the future. No statement in this document is
intended to be nor may be construed as a profit forecast.
On Future-Oriented Financial Information: To the extent any forward-
looking information in this presentation constitutes “future-oriented financial
information” or “financial outlooks” within the meaning of applicable Canadian
securities laws, such information is being provided to demonstrate the
anticipated market penetration and the reader is cautioned that this information
may not be appropriate for any other purpose and the reader should not place
undue reliance on such future-oriented financial information and financial
outlooks. Future-oriented financial information and financial outlooks, as with
forward-looking statements generally, are, without limitation, based on
the assumptions and subject to the risks set out above under the heading
“Cautionary Statement On Forward-Looking Statements.”
The Company’s actual financial position and results of operations may differ
materially from management’s current expectations and, as a result, the
Company’s revenue and expenses may differ materially from the revenue and
expenses profiles provided in this presentation. Such information is presented
for illustrative purposes only and may not be an indication of the Company’s
actual financial position or results of operations.
More Information: For a discussion of some of the important factors that
could cause Company’s results to differ materially from those expressed in, or
implied by, the forward-looking statements included in this presentation,
investors should refer to the disclosures contained under the headings “Risk
Factors” and “Disclosure Regarding Forward-Looking Statements” in the
Company’s Annual Report on Form 10-K for the fiscal year-ended December
31, 2019, available on the Investor Relations section of the Company’s website
at https://investors.gtigrows.com, the U.S. Securities Exchange Commission’s
website at www.sec.gov and Canada’s System for Electronic Document
Analysis and Retrieval at www.sedar.com.
USE OF NON-GAAP MEASURES: In addition to disclosing financial results
that are determined in accordance with U.S. generally accepted accounting
principles (“GAAP”, the Company also discloses in this presentation certain
non-GAAP financial information, as defined by the SEC, including EBITDA and
adjusted operating EBITDA. EBITDA means earnings before interest, taxes,
depreciation and amortization and is a measurement of financial performance
without having to factor in financing decisions, accounting decisions or tax
environments. Adjusted operating EBITDA is earnings before interest, taxes,
depreciation, amortization, less certain non-cash equity compensation
expense, including one-time transaction fees and all other non-cash items.
Reconciliations of these non-GAAP financial measures to the most directly
comparable financial measure calculated and presented in accordance with
GAAP are included in the financial schedules attached to this presentation as
Appendix A. Non-GAAP information should be considered as supplemental in
nature and not as a substitute for, or superior to, any measure of performance
prepared in accordance with GAAP.
2
Agenda
• The American Cannabis Market Opportunity
• Green Thumb Overview
• Our Strategy
• Consumer Products Portfolio
• Retail Experience
• Community Impact
• Financial Performance
3
THE CANNABIS MARKET
Opportunities in the cannabis industry.
4
Projected U.S. Cannabis Market Size Rivals Alcohol + Tobacco, Driven by Illicit-to-legal Sales + New User Adoption
$0
$20
$40
$60
$80
$100
$120
Tobacco Beer Cannabis Spirits Wine
To
bacco
Be
er
Sp
irit
s
Ca
nn
ab
is
Win
e
$110B
$80B$70B
$80B
$120B
US Market Size ($B)
Statista, National Brewers Association, 2018 Wine Analytics Report, Statista; Cannabis category reflects projections from industry analysts 5
…With Massive Growth Expected Over the Next 10 YearsAcross a Highly Fragmented Market
0%
5%
10%
15%
20%
Cannabis Spirits Wine Tobacco Beer
To
ba
cco
Be
er
Sp
irit
s
Can
nab
is
Win
e
Projected Compound
Annual Growth Rate
6Management estimates; Cowen Equity Research; Beer, Wine, and Spirits reflect historical 10yr CAGR; Tobacco reflects conservatively
projected future 10yr CAGR; Cannabis reflects projected future 10yr CAGR
The End of Cannabis Prohibition Supported by Positive Social & Regulatory Momentum
POSITIVE REGULATORY MOMENTUM
ADDRESSES OPIOID EPIDEMIC
Dec. 2018: Farm Bill Passes
Sept. 2019: SAFE Act Passed House
States Act in U.S. Congress
25%Reduction in Opioid
Related Deaths2
2018 National Legalization
30+ Countries Legal Program
7
66% Bipartisan Support for Legalization1
(1) Gallup; (2) Journal of American Medicine; Medical Cannabis Laws and Opioid Analgesic Overdose Mortality in the United States, 1999-2010
$14.9
$1.8
$0
$20
$40
$60
$80
U.S. CANADA
U.S. VS. CANADIAN MARKET OPPORTUNITY ($B)1
PROJECTED MARKET SIZE
MARKET CAP
Yet, it is still early in the U.S. with $15B legal cannabis sales and market cap at a discount.
(1) Analyst reports and management estimates; July 31, 2020
ACTUAL MARKET SIZE
Continued growth expected to be driven by limited
supply markets transitioning from medical to adult use.
8
GREEN THUMB OVERVIEW
National leader in cannabis consumer products.
9
OUR MISSION
Promote well-being through the power of cannabis.Trusted Consumer Brands | Accessible Retail | People-First | Forward-Thinking Investing
10
At a Glance
Revenue Growth
$0
$100
$200
$300
$400
$500
Green Thumb Annual
Net Revenue ($M)
A family of cannabis brands
A national cannabis retailer
48Open Storesas of 7/31/2020
11
Because well-being is personal,
we make brands and products to
fit different preferences and
lifestyles.
Our real power is in our people
and our shared commitment to
giving back to the communities
that we serve.
A place where people come first
Our retail stores prioritize
educational and explorative
experiences, shepherded by our
People Care Specialists.
96Retail
Licenses
6 Consumer
Product Brands
12 Distributed to
12 States
2014 Founded
Chicago, IL
1900+Team members
Nationwide
2020FY Consensus Estimate1
(1) S&P Capital IQ Consensus Estimate as of July 23, 2020
Vertically Integrated Supply ChainENSURES CONSISTENCY IN CONSUMER BRAND EXPERIENCE FROM MARKET TO MARKET
Across 12 Markets + 150 million Americans
DistributionProduction
13 Cultivation + Manufacturing Facilities
RetailIncluding owned
retail channel
12
GREEN THUMB OVERVIEW
Our strategy & execution.
13
Executing with Enter Open Scale Strategy
ENTER2014 - 2017
OPEN2018 - 2019
2020 + SCALE
Maintain financial flexibility and achieve
sustainable positive cashflow
Enhance community partnerships
Solidify brand
foundations for
lasting consumer
relationships
Expand operational
capacity through
infrastructure
automation
Establish licensing footprint in limited supply markets
Drive revenue through production facility and store openings
Position business for sustainable, profitable growth
14
Established National PresenceWITH GROWTH OPPORTUNITIES AS MARKETS CONVERT FROM MEDICAL TO ADULT USE
ILLINOIS
Entered: 2015
Adult Use: 2020
2 Manufacturing Facilities
8 Open Retail Stores
PENNSYLVANIA
Entered: 2017
High-Growth Medical
1 Manufacturing Facility
12 Open Retail Stores
15
Adult use market
Near TermPriority Markets
Medical market
+7%
+44%+24%
+16%
+24%
+18%
FY 2019 Product Category $ Share and % Growth vs. YA1
Flower Pre-Rolls
Vape Concentrates
Edibles Health & Beauty
Data-Driven Portfolio Assortment
Strategic Growth Priorities
BRAND
Consumer-driven brand
foundations
OPERATIONAL EFFICIENCY
Capacity & Automation
STRATEGIC POINTS OF DISTRIBUTION
Third-party and owned-retail
Investing in Consumer Products Excellence
Portfolio of Trusted Consumer Brands
top
icals
ed
ible
s
va
pe
f
low
er
(1) BDS Analytics: California, 2019 16
We are a family of brands.
17
Diversified Brand Portfolio Positioned to Promote Well-being Across Consumer Segments
Poised to capture
growth across
consumer need-
states that promote
well-being
(comfortable,
healthy, happy)
HA
PP
YH
EA
LT
HY
CO
MF
OR
TA
BL
E
VALUE PREMIUM
Price
Well-beingneed-state
18
GREEN THUMB FOR GOOD – PURPOSE DRIVEN BRANDS
19
AWARD-WINNING PRODUCT
Premium Cannabis Flower and
100% Full-Spectrum Cannabis Vape
~
Voted Best Strain in Chicago by
The Chicago Reader
~
High Times Recognized
WE SUPPORT
GLBT Historical Society
BRAND PROMISE
Find Your Rythm
GREEN THUMB FOR GOOD – PURPOSE DRIVEN BRANDS
20
BRAND PROMISE
Enjoy the Journey
AWARD-WINNING PRODUCT
Full Flower Pre-Rolls Mini Multi-Pack and Big Dogs
~
Clio Award Winner for Design~
Recognized in Packaging World Magazine
WE SUPPORT
Proceeds support Community Animal Shelters in need
~
Partnership with Veterans organization Operation 1620
GREEN THUMB FOR GOOD – PURPOSE DRIVEN BRANDS
21
BRAND PROMISE
The Credible Edible
AWARD-WINNING PRODUCT
Flavor-forward confections with the effect you can expect
~
chocolatey bars, gummies, tarts~
Recognized by High Times Cannabis Cup, GQ Magazine,
Cannabis Business Awards
LOVED BY CONSUMERS
“With incredibles, I get the same experience every single time, and I will always choose that
consistency.” – Jordan, medical patient
High Growth Retail
Omnichannel Personalization
Investing in the Retail Experience
Management analysis
360 STOREFRONT
Our digital storefront, delivery, and
brick-and-mortar experience allows
for anytime, anywhere accessibility
LOYALTY
Owned customer analytics drives
basket size and strengthens
customer relationships
ASSORTMENT
Variety of product categories and
price points for optimal consumer
selection
National Footprint
48Open Storesas of 7/31/2020
Pipeline of licenses to more than double
opened stores
22
Same Store Sales Exceed
75%+
service
selection
Why do you shop with Rise?
“Felt like family.”
“Extremely friendly,
offering great help with
their product selections.”
23
We are growing every day.
PEOPLE-FIRST EMPLOYER
It is our 1900+ people nationwide that make
Green Thumb special. Humble and
hardworking, we are honored to be awarded
2019 mg Magazine Leading Industry
Employer.
MAKING LOCAL IMPACT PROMOTING SOCIAL EQUITY
We believe that with this opportunity comes great
responsibility. With GRATITUDE as a core value,
we are proud to support hundreds of social equity
applicants in business licensing and incubation
with our pro-bono License Education Assistance
Program (LEAP).
CARE is a core value of Green Thumb,
and it is in that spirit that our teammates
across the country donate time and
money to the local communities in which
we operate.
24
Green Thumb Leadership Team
Anthony GeorgiadisCHIEF FINANCIAL OFFICER
DIRECTOR
Ben Kovler FOUNDER & CEO
CHAIRMAN
Beth BurkGENERAL COUNSEL & SECRETARY
Julie Knudson CHIEF PEOPLE OFFICER
Swadheen SehgalCHIEF INFORMATION OFFICER
Jennifer DooleyCHIEF STRATEGY OFFICER
Andrew GrossmanEVP, CAPITAL MARKETS
25
Greg FlickingerSVP, CPG OPERATIONS
& SUPPLY CHAIN
Dan ShakerSVP, NATIONAL SALES
Dina RollmanSVP, GOVERNMENT
& REGULATORY AFFAIRS
Board of Directors with Diverse Backgrounds
• Co-founder of Integral Associates, which was acquired by Green Thumb in 2019.
• Served as Chairman of the Board and CEO of Tropicana Las Vegas Hotel & Casino, Inc.
• Served as Chairman of the Board and Chief Executive Officer of MetroGoldwyn-Mayer Inc.
• Served as Director and President of MGM Resorts International, Inc. (“MGM”) (formerly MGM Grand, Inc. and MGM Mirage Resorts, Inc.)
• Chief Executive Officer & Founder of WBS Equities, LLC., specializing in ground-up construction, renovation, development, sale lease back transactions and acquisitions.
• Co-founder and COO of Neoglyphics Media Corporation, one of the country’s first website development firms.
• Employee number 11 at Orbitz and served as Director of Strategic Enterprise Planning.
• Grew Anthropologie into a billion-dollar brand as President in 1994
• Named Executive Vice President of URBN in 2002.
• Elected to the company’s board of directors in 2004
• Named CEO of URBN in 2007
• CEO for David Yurman; founded Front Row Partners in April 2014.
• Currently serves on the board of directors of Aritzia (TSE: ATZ), Boden, Kendra Scott and Opening Ceremony.
• Chief Executive Officer of Robin Hood, New York City’s largest poverty-fighting organization, bestselling author, and decorated army combat veteran.
• Founder and CEO at BridgeEdU, an innovative platform addressing the college completion and job placement crisis.
• Served as a White House Fellow to Secretary of State Condoleezza Rice.
• During a 20-year tenure at Goldman Sachs & Co, transformed the equities division through the restructure and redeployment of people and capital to one of the firm’s largest and most profitable divisions.
• Serves as director and sits on the audit committees, of Geisinger Health and Private Client Bank.
• National arbitrator of the Financial Industry Regulatory Authority
• Decorated veteran; qualified officer of the deck in the nuclear submarine force of the United States Navy.
26CEO Ben Kovler is the Chairman and CFO Anthony Georgiadis is a Director.
Wendy BergerREAL ESTATE
Glen SenkBRAND
Wes MooreCOMMUNITY
William GruverGOVERNANCE
Alejandro YemenidjianOPERATIONS
GREEN THUMB OVERVIEW
Financial Performance.
27
Strategy drives strong 2Q financials towards sustainable profitable growth 2Q2020 DELIVERS +17% SEQUENTIAL QUARTER REVENUE GROWTH AND +39% ADJUSTED OPERATING EBITDA GROWTH
Summary Income Statement(USD $000s)
Revenue
Gross Profit
Adjusted Operating EBITDA1
Cash
Debt2
$82,943
As of
June 30, 2020
95,205
Summary Balance Sheet(USD $000s)
$44,727
2019
21,504
2,285
63,694
35,413
$119,640
20203 Months Ended June 30
Quarterly Net Revenue ($M) vs. Adjusted Operating EBITDA (%)
28
(1) Adjusted Operating EBITDA defined as earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash share-based
compensation, one-time transaction related expenses, or other non-operating costs. (2) Debt is $95,205 thousand, which includes $267 thousand of short-term debt
due within one year; amount carried on the balance sheet is recorded net of debt discounts of $12,885 thousand as of June 30, 2020.
0%
5%
10%
15%
20%
25%
30%
35%
$0
$25
$50
$75
$100
$125
2Q19 3Q19 4Q19 1Q20 2Q20
Adju
ste
d O
pera
ting
EB
ITD
A M
arg
in
Re
ve
nu
e (
$M
)
Revenue Adj. Op. EBITDA %
Fully Diluted Capitalization TableSHARE CLASS (AS OF 7/31/2020)
Subordinate Voting Shares
Multiple Voting Shares
Super Voting Shares
Employee Stock Ownership Plan
TOTAL Fully Diluted Shares
160,217,823
12,218,400
37,933,600
6,683,790
220,811,296
Warrants 2,491,735
1,265,948Exchangeable Receipts
TOTAL Basic Shares Outstanding 210,369,823
Share Class
Fully Diluted Share Count1
29
(1) In order to determine diluted loss per share, it is assumed that any proceeds from the exercise of dilutive stock options would be used to repurchase common
shares at the average market price during the period. The diluted loss per share calculation excludes any potential conversion of stock options and convertible debt that
would decrease loss per share. As a result, the Company’s calculation of basic loss per share and diluted loss per share include the same number of share equivalents.
70%+Current Float of Shares Outstanding
Appendix ANET INCOME TO ADJUSTED OPERATING EBITDA RECONCILIATION
31Audited Financials; (1) EBITDA defined as earnings before interest, taxes, depreciation, and amortization; (2) Adjusted Operating EBITDA defined as earnings before interest,
taxes, depreciation, and amortization, adjusted for other income, non-cash share-based compensation, one-time transaction related expenses, or other non-operating costs.
Depreciation + amortization 14,240 6,252
EBITDA1 (non-GAAP measure) 28,291 (3,075)
(USD $000s)
$(20,675)
2019
(536)
5,398
(154)
4,735
$(11,764)
2020
15,379
3 Months Ended June 30
Net Income (Loss) Before Noncontrolling Interest (GAAP)
Interest income
Interest expense
Income tax expense
Adjusted Operating EBITDA2 (non-GAAP measure)
Other income
Share-based compensation, non-cash
Acquisition, transaction + other non-operating costs
5,717
5,700
6,641
3,915
35,413 2,285
1,422 1,445
(16)
Illinois• 2015: Won 2 cultivation/processing
Nevada• 2015: Acquired 1 cultivation, 1
processing • 2019: Acquired Integral Associates: 2
Production in Las VegasMaryland
• 2017: Acquired 1 processing• 2018: Won 1 cultivation license• 2019: 1 cultivation license approved
Development of Green Thumb’s Operating Infrastructure
Consumer Products Business
Illinois• 2015: Won 1 retail license• 2016: Acquired 50% of 1 retail store• 2017: Acquired 2 operating retail stores• 2019: Acquired 1 operating retail store
Nevada• 2015: Acquired 2 retail licenses• 2019: Acquired Integral Associates: 3
retail in Las Vegas; won 8 additional retail licenses
Maryland• 2017: Won 1 retail license; Acquired 2
retail licenses
Massachusetts• 2016: Won 2 cultivation/processing
Pennsylvania• 2017: Won 1 cultivation/processing
Florida• 2018: Acquired 1 cultivation/processing
Ohio• 2019: Won 1 processing license;
Awarded cultivation licenseArkansas
• 2018: Applied, did not win
New York• 2018: Acquired 1 cultivation/processing
New Jersey• 2018: Won 1 cultivation/processing
California• 2019: Acquired Beboe brand
Colorado• 2019: Acquired incredibles brand
Connecticut• 2019: Acquired Advanced Grow Labs (AGL):
1 cultivation/processing
Retail Business
Massachusetts• 2016: Won 2 retail licenses• 2018: Acquired 1 retail location in
BostonPennsylvania
• 2017: Won 3 retail; Partner to own 3 additional retail
• 2018: Won 12 additional retail licensesFlorida
• 2018: Acquired 30 retail locations• 2019: Program expansion for 5
additional retail locationsOhio
• 2018: Won 5 retail licenses
Arkansas• 2018: Applied, did not win
New York• 2018: Acquired 4 retail licenses
New Jersey• 2018: Won 1 retail license
California• 2018: Won 1 retail license in West
Hollywood (includes consumption lounge)• 2019: Won 1 retail license in Pasadena and
1 retail license in Culver City Connecticut
• 2019: Acquired AGL: 1 retail license• 2019: Acquired 1 retail store
Track Record of Strategically Scaling National FootprintTHROUGH 33 PURE LICENSE WINS AND 14 M&A TRANSACTIONS SINCE 2015
32